Alabama Gets Session Date for Lottery Question

bentley-robert-al-gov.jpg

BRADENTON, Fla. – The Alabama Legislature will begin a special session Aug. 15 to consider the controversial issue of creating a state lottery.

Gov. Robert Bentley announced the session on Friday, saying a lottery would fund essential state needs.

His office did not respond to questions about when the governor's legislation would be available for the public to review.

"Please join with me in asking your legislators to allow us to help our people," the governor said in a video posted on his website.

The governor's lotto plan met with mixed reaction from lawmakers and the public after it was first announced last week.

Bentley said Alabamians go to neighboring states to gamble, and "it's time we stop supporting other states' budgets and keep our money at home to solve our own problems."

If lawmakers agree with the governor's proposal, a statewide referendum likely would be held Nov. 8 to let voters decide whether to create a state-sponsored game.

When a lottery question last appeared on the ballot 17 years ago to fund education it failed, with 54% of voters saying no.

Bentley, who has been unable to get lawmakers to back new revenue sources for the general fund, said Friday that a lottery would be the best chance for the state to solve its financial problems.

It would generate about $225 million annually, he has said.

According to the North American Association of State and Provincial Lotteries, 43 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands sponsor government-operated lotteries.

Lottery proceeds support various programs, including education, economic development, health care, and capital construction projects, the NAASPL said on its website.

U.S. lottery sales totaled $73.8 billion in fiscal 2015 with about $21 billion funding various programs, the association said. The remaining sales fund prizes, retailer commissions, and administration.

New York had the largest amount of sales with $9.1 billion, followed by Florida with $5.58 billion in 2015.

Some states, including Florida, issue revenue bonds backed by lottery proceeds.

Bentley has not indicated that he would recommend Alabama's lottery revenues be leveraged.

Earlier this year, he vetoed the general fund budget for fiscal 2017 saying that it was about $85 million short of fully funding Medicaid.

Legislators overrode his veto.

Alabama's fiscal year starts Oct. 1.

In previous years, the state has borrowed from internal funds and reserves to cover general fund expenses, which include all operations except education.

For reprint and licensing requests for this article, click here.
Alabama
MORE FROM BOND BUYER